PIRELLI & C SPA (PIRC.MI) Stock Fundamental Analysis
BIT:PIRC - IT0005278236 - Common Stock
5.874 EUR
+0.06 (+1.07%)
We assign a fundamental rating of 6 out of 10 to PIRC. PIRC was compared to 27 industry peers in the Automobile Components industry. While PIRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PIRC has a decent growth rate and is not valued too expensively. PIRC also has an excellent dividend rating. These ratings would make PIRC suitable for dividend investing!
1. Profitability
1.1 Basic Checks
PIRC had positive earnings in the past year.
PIRC had a positive operating cash flow in the past year.
Each year in the past 5 years PIRC has been profitable.
Each year in the past 5 years PIRC had a positive operating cash flow.
1.2 Ratios
PIRC has a Return On Assets of 5.77%. This is amongst the best in the industry. PIRC outperforms 96.30% of its industry peers.
The Return On Equity of PIRC (13.51%) is better than 88.89% of its industry peers.
PIRC has a better Return On Invested Capital (11.09%) than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PIRC is in line with the industry average of 6.77%.
The 3 year average ROIC (6.34%) for PIRC is below the current ROIC(11.09%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 13.51% | ||
| ROIC | 11.09% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
1.3 Margins
With an excellent Profit Margin value of 7.25%, PIRC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PIRC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.54%, PIRC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of PIRC has remained more or less at the same level.
The Gross Margin of PIRC (63.93%) is better than 92.59% of its industry peers.
PIRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.54% | ||
| PM (TTM) | 7.25% | ||
| GM | 63.93% |
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
2. Health
2.1 Basic Checks
PIRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PIRC has about the same amount of shares outstanding.
Compared to 5 years ago, PIRC has about the same amount of shares outstanding.
Compared to 1 year ago, PIRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.06 indicates that PIRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.06, PIRC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
PIRC has a debt to FCF ratio of 3.76. This is a good value and a sign of high solvency as PIRC would need 3.76 years to pay back of all of its debts.
The Debt to FCF ratio of PIRC (3.76) is better than 92.59% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that PIRC is somewhat dependend on debt financing.
PIRC has a Debt to Equity ratio of 0.51. This is in the better half of the industry: PIRC outperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.76 | ||
| Altman-Z | 2.06 |
ROIC/WACC1.72
WACC6.43%
2.3 Liquidity
PIRC has a Current Ratio of 1.17. This is a normal value and indicates that PIRC is financially healthy and should not expect problems in meeting its short term obligations.
PIRC has a worse Current ratio (1.17) than 62.96% of its industry peers.
PIRC has a Quick Ratio of 1.17. This is a bad value and indicates that PIRC is not financially healthy enough and could expect problems in meeting its short term obligations.
PIRC has a worse Quick ratio (0.72) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
PIRC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.45%.
The Earnings Per Share has been growing slightly by 1.33% on average over the past years.
Looking at the last year, PIRC shows a small growth in Revenue. The Revenue has grown by 2.40% in the last year.
PIRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.94% yearly.
EPS 1Y (TTM)3.45%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)2.4%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%-0.68%
3.2 Future
The Earnings Per Share is expected to grow by 7.04% on average over the next years.
PIRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.21% yearly.
EPS Next Y1.07%
EPS Next 2Y6.34%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue Next Year1.05%
Revenue Next 2Y1.85%
Revenue Next 3Y2.38%
Revenue Next 5Y2.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.79 indicates a reasonable valuation of PIRC.
Based on the Price/Earnings ratio, PIRC is valued a bit cheaper than 74.07% of the companies in the same industry.
PIRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
The Price/Forward Earnings ratio is 8.96, which indicates a very decent valuation of PIRC.
The rest of the industry has a similar Price/Forward Earnings ratio as PIRC.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, PIRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
PIRC's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PIRC indicates a somewhat cheap valuation: PIRC is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.74 | ||
| EV/EBITDA | 4.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PIRC does not grow enough to justify the current Price/Earnings ratio.
PIRC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)9.12
PEG (5Y)7.37
EPS Next 2Y6.34%
EPS Next 3Y7.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.30%, PIRC is a good candidate for dividend investing.
PIRC's Dividend Yield is a higher than the industry average which is at 4.87.
Compared to an average S&P500 Dividend Yield of 2.41, PIRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of PIRC has a limited annual growth rate of 2.92%.
Dividend Growth(5Y)2.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PIRC pays out 33.45% of its income as dividend. This is a sustainable payout ratio.
The dividend of PIRC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.45%
EPS Next 2Y6.34%
EPS Next 3Y7.04%
BIT:PIRC (9/5/2025, 7:00:00 PM)
5.874
+0.06 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners13.77%
Inst Owner ChangeN/A
Ins Owners27.72%
Ins Owner ChangeN/A
Market Cap5.87B
Analysts83.16
Price Target6.86 (16.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend0.2
Dividend Growth(5Y)2.92%
DP33.45%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.78%
Min EPS beat(2)-1.96%
Max EPS beat(2)23.51%
EPS beat(4)3
Avg EPS beat(4)7.52%
Min EPS beat(4)-1.96%
Max EPS beat(4)23.51%
EPS beat(8)7
Avg EPS beat(8)15.97%
EPS beat(12)11
Avg EPS beat(12)21.36%
EPS beat(16)14
Avg EPS beat(16)26.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)2.31%
Revenue beat(8)1
Avg Revenue beat(8)-0.75%
Revenue beat(12)4
Avg Revenue beat(12)9.81%
Revenue beat(16)8
Avg Revenue beat(16)20.85%
PT rev (1m)0.12%
PT rev (3m)2.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.46%
EPS NY rev (3m)-2.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.96 | ||
| P/S | 0.57 | ||
| P/FCF | 5.74 | ||
| P/OCF | 4.12 | ||
| P/B | 1.06 | ||
| P/tB | 13.04 | ||
| EV/EBITDA | 4.32 |
EPS(TTM)0.6
EY10.21%
EPS(NY)0.66
Fwd EY11.17%
FCF(TTM)1.02
FCFY17.41%
OCF(TTM)1.43
OCFY24.26%
SpS10.32
BVpS5.54
TBVpS0.45
PEG (NY)9.12
PEG (5Y)7.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.77% | ||
| ROE | 13.51% | ||
| ROCE | 14.34% | ||
| ROIC | 11.09% | ||
| ROICexc | 12.24% | ||
| ROICexgc | 28.59% | ||
| OM | 13.54% | ||
| PM (TTM) | 7.25% | ||
| GM | 63.93% | ||
| FCFM | 9.91% |
ROA(3y)3.32%
ROA(5y)2.47%
ROE(3y)8.23%
ROE(5y)6.31%
ROIC(3y)6.34%
ROIC(5y)5.02%
ROICexc(3y)7.45%
ROICexc(5y)5.98%
ROICexgc(3y)18.21%
ROICexgc(5y)15.26%
ROCE(3y)8.22%
ROCE(5y)6.5%
ROICexcg growth 3Y6.83%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y13.56%
ROICexc growth 5Y3.32%
OM growth 3Y6.63%
OM growth 5Y-1.41%
PM growth 3Y6.75%
PM growth 5Y-3.44%
GM growth 3Y15.15%
GM growth 5Y5.65%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.76 | ||
| Debt/EBITDA | 1.44 | ||
| Cap/Depr | 69.23% | ||
| Cap/Sales | 3.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.01% | ||
| Profit Quality | 136.61% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.06 |
F-Score7
WACC6.43%
ROIC/WACC1.72
Cap/Depr(3y)65.74%
Cap/Depr(5y)60.49%
Cap/Sales(3y)5.68%
Cap/Sales(5y)5.68%
Profit Quality(3y)193.7%
Profit Quality(5y)400.33%
High Growth Momentum
Growth
EPS 1Y (TTM)3.45%
EPS 3Y9.65%
EPS 5Y1.33%
EPS Q2Q%-5.88%
EPS Next Y1.07%
EPS Next 2Y6.34%
EPS Next 3Y7.04%
EPS Next 5YN/A
Revenue 1Y (TTM)2.4%
Revenue growth 3Y8.31%
Revenue growth 5Y4.94%
Sales Q2Q%-0.68%
Revenue Next Year1.05%
Revenue Next 2Y1.85%
Revenue Next 3Y2.38%
Revenue Next 5Y2.21%
EBIT growth 1Y5.98%
EBIT growth 3Y15.49%
EBIT growth 5Y3.46%
EBIT Next Year54.41%
EBIT Next 3Y18.84%
EBIT Next 5Y10.1%
FCF growth 1Y33.45%
FCF growth 3Y12.02%
FCF growth 5Y7.38%
OCF growth 1Y24.24%
OCF growth 3Y12.04%
OCF growth 5Y4.79%